THOUSANDS of drivers could pay more for car insurance after August 1 after one state changed its insurance calculations.
The state hadn’t changed its reporting rule in more than 50 years and lagged behind its peers in auto insurance reporting before the new highway laws.
Starting August 1, North Dakota will begin reporting all traffic violations to insurance companies, marking a significant change in how the state handles traffic violations.
Currently, only infractions that accumulate three points or more are shared with insurers when they request a driving record.
But with the new regulations, any traffic fine, regardless of severity, will be reported to your insurance company.
Authorities said some auto insurers believed the drivers had a clean driving record, when in fact their licenses had been suspended for repeated minor violations.
Police in the region hope the change in rules will make drivers more careful on the road.
“This means drivers will pay more attention to how they are driving and be more responsible on the road,” Sergeant Wade Kadrmas of the North Dakota Highway Patrol told the local NBC affiliate. KFYR-TV.
Kadrmas said drivers can avoid higher insurance rates by slowing down on the highway.
“These types of violations would be reported,” he added.
State Insurance Commissioner Jon Godfread told the station that the Department of Transportation has suspended some driver’s licenses because they “accumulated too many points from these minor traffic violations.”
But insurance companies were unaware of the violations due to notification rules.
North Dakota has not changed its insurance rules since 1970.
Sergeant Kadrmas said drivers can keep their rates low if they remain vigilant on the road.
“Be responsible [and] do your job as a driver”, he advised.
“Pay attention to the roads, obey all traffic signs, obey all speed limits and you should not have any problems with your insurance company or the authorities.”
Car Insurance Tips
Here are some ways to reduce your monthly car insurance rates:
- Increase the deductible – this can increase the amount drivers must pay in the event of an accident
- Ask insurance companies for discounts
- Slow down on the road
- Keep your cell phone away from the steering wheel
- Improve credit score (in some states)
- Insurance policy package
Source: Mutual Freedom
CHANGE OF INSURANCE
Auto insurers have struggled with rising vehicle costs and rising accident rates.
Modern vehicles come standard with more advanced technology, including more cameras, displays, chips and batteries.
Although cars continue to deploy more safety technology, advancements make vehicle repairs more expensive.
Additionally, drivers have suffered a historic number of motor vehicle accidents since 2020, according to the National Road Traffic Safety Agency.
Consequently, insurance companies increased monthly rates for drivers.
Americans are paying an average of 18% more on car insurance compared to 2020.
This story originally appeared on The-sun.com read the full story